Volvo 2000 Annual Report Download - page 9

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7
Efficiency is the key
The pace of technical development in areas such as materials, fuels, more efficient engines,
electronic systems and information technology, is increasing. The urgent drive to meet new
levels of efficiency and environmental compatibility increases costs and shortens product life
cycles.
The demand for lower costs requires lean and efficient operations, as well as global and
regional economies of scale for key components. To maintain and improve financial perform-
ance, manufacturers must be at the forefront of efficiency and scale. Process orientation,
modularization for efficiency, the use of web-based solutions to reduce lead times and costs in
the supply chain, and industry restructuring are key strategies in the emerging business
environment. These are the driving forces behind the consolidation of the industry.
Volvo acquires Mack and Renault V.I.
Volvo takes an active part in the industry’s consolidation, and as a result the truck operations
of Renault, including Mack and Renault V.I., were added to the Group as of January 2, 2001.
Through the acquisition, Volvo’s truck volumes have doubled and we are now Europe’s largest
and the world’s second-largest producer of heavy trucks. In the engine sector, the volume of
heavy diesel engines (>8 liter) has virtually doubled, which makes us one of the world’s four
largest manufacturers of heavy diesel engines.